{"id":48792,"date":"2026-04-16T11:35:15","date_gmt":"2026-04-16T11:35:15","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/04\/16\/hedge-funds-eye-strongest-monthly-returns-in-over-a-decade\/"},"modified":"2026-04-16T11:35:15","modified_gmt":"2026-04-16T11:35:15","slug":"hedge-funds-eye-strongest-monthly-returns-in-over-a-decade","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/04\/16\/hedge-funds-eye-strongest-monthly-returns-in-over-a-decade\/","title":{"rendered":"Hedge funds eye strongest monthly returns in over a decade"},"content":{"rendered":"
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Hedge funds are on track to deliver their strongest monthly performance in more than a decade, recovering from a sharp downturn in March, as per a Goldman Sachs note, cited in a Reuters report.<\/p>\n

The recovery follows a difficult period triggered by the Iran war, which had weighed on returns during March.<\/p>\n

However, improved market conditions have helped funds regain momentum, the Goldman Sachs quarterly hedge fund industry report showed.<\/p>\n

Long-short strategies drive monthly gains<\/h2>\n

Stockpickers employing long and short strategies have emerged as the top performers this month.<\/p>\n

Goldman Sachs <\/a>said these funds are up 7.7% so far this month through Tuesday\u2019s close.<\/p>\n

This marks their strongest monthly performance since the start of 2016, when the bank began tracking the data.<\/p>\n

Long positions benefit when asset prices rise, while short positions generate profits when prices decline.<\/p>\n

The combination has allowed managers to navigate volatile conditions and capture gains from both sides of the market.<\/p>\n

On a year-to-date basis, long-short equity funds have gained approximately 6.7%, with Asia- and China-focused managers leading overall performance.<\/p>\n

First-quarter performance remains modest<\/h2>\n

Despite the recent rebound, overall hedge fund performance in the first quarter remained relatively modest. <\/p>\n

Funds across all strategies posted average gains of 1.6% during the quarter.<\/p>\n

This comes after a difficult March, when funds were down 1.8% as macro traders faced widespread losses during market turbulence.<\/p>\n

The data highlights the extent of the recovery in April, as funds reversed earlier declines and returned to positive territory.<\/p>\n

Strong inflows support equity-focused funds<\/h2>\n

Equity long-short hedge funds attracted significant investor interest during the March quarter.<\/p>\n

These funds recorded their largest inflows since 2022, supported by continued bullish sentiment among allocators and limited partners.<\/p>\n

Investors continued to back money managers despite recent market struggles, signalling confidence in their ability to generate returns in volatile environments.<\/p>\n

Lower losses compared to traditional portfolios<\/h2>\n

During March, hedge funds showed relative resilience compared with traditional investment portfolios.<\/p>\n

Hedge funds incurred 35% of the losses seen in portfolios allocated 60% to stocks and 40% to bonds, as mentioned in a Reuters report.<\/p>\n

This comparatively lower drawdown underscores the defensive characteristics of hedge fund strategies during periods of market stress.<\/p>\n

Rising dispersion highlights market volatility<\/h2>\n

The report also pointed to a sharp increase in dispersion among hedge fund returns.<\/p>\n

The gap between top-performing and underperforming funds rose to its highest level in three years during March.<\/p>\n

This reflects heightened volatility and differing outcomes based on strategy and positioning.<\/p>\n

Sector and strategy outperformance<\/h2>\n

Certain strategies and sectors delivered standout performance during the quarter.<\/p>\n

Equity long-short funds generated so-called “alpha” returns, or profits derived from trading skill rather than broader market movements.<\/p>\n

Market-neutral funds gained 10.3%, while healthcare-focused funds surged 33.6%.<\/p>\n

Asia-focused strategies also performed strongly, posting gains of 28.1%.<\/p>\n

The divergence in returns highlights how targeted strategies and regional exposure played a key role in driving hedge fund performance during a volatile period.<\/p>\n

The post Hedge funds eye strongest monthly returns in over a decade<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Hedge funds are on track to deliver their strongest monthly performance in more than a decade, recovering from a sharp downturn in March, as per a Goldman Sachs note, cited in a Reuters report. The recovery follows a difficult period triggered by the Iran war, which had weighed on returns during March. However, improved market <\/p>\n","protected":false},"author":1,"featured_media":48793,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-48792","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/48792","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=48792"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/48792\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/48793"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=48792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=48792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=48792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}